Rebecca C. Lutzko United States Attorney for the Northern District of Ohio | U.S. Attorney for the Northern District of Ohio
An Ohio resident has been sentenced to 27 months in prison for fraudulently obtaining Paycheck Protection Program (PPP) loans. Daniel R. Hitlan, aged 34, from Huron, Ohio, was sentenced by U.S. District Court Judge Jeffrey J. Helmick on May 20 after pleading guilty to charges of bank fraud and money laundering in February.
Hitlan was ordered to pay $2,744,013.33 in restitution and will serve three years of supervised release following his imprisonment. The fraudulent activities took place in April and May of 2020 when Hitlan acquired three PPP loans for businesses he owned.
The PPP was introduced as part of the Coronavirus Aid, Relief and Economic Security (CARES) Act in 2020 to support small businesses during the COVID-19 pandemic. Hitlan admitted to submitting false payroll documents with his loan applications. Investigations revealed discrepancies between the information provided by Hitlan and records from the IRS and state authorities.
According to court documents, the funds obtained through these fraudulent loans were used by Hitlan for personal purchases including Rolex watches, a Cadillac Escalade, a vintage Chevrolet Corvette, and real estate.
The investigation was conducted by IRS-Criminal Investigations (CI) alongside the FBI Cleveland Division. Assistant U.S. Attorney Gene Crawford prosecuted the case on behalf of the Northern District of Ohio.
IRS-CI is tasked with investigating financial crimes such as tax fraud and money laundering among others. They maintain a high federal conviction rate through their specialized jurisdiction over Internal Revenue Code violations.
Reports regarding CARES Act fraud can be submitted via the Justice Department’s National Center for Disaster Fraud Hotline or online.
